Leidos awarded $26.9M for high-end supercomputing, with funding split between two task orders

Contract Overview

Contract Amount: $26,947,134 ($26.9M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2011-04-20

End Date: 2017-03-31

Contract Duration: 2,172 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FUNDING FOR NEWLY AWARDED HIGHEND SUPERCOMPUTING TASK ORDER FUNDING SHOULD BE 50% CSC00023 AND 50% CTS00057

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $26.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: FUNDING FOR NEWLY AWARDED HIGHEND SUPERCOMPUTING TASK ORDER FUNDING SHOULD BE 50% CSC00023 AND 50% CTS00057 Key points: 1. The contract value represents a significant investment in advanced computing capabilities. 2. Funding is allocated equally across two distinct task orders, suggesting a structured approach to resource deployment. 3. The use of Time and Materials pricing may introduce cost variability if not closely managed. 4. The contract duration of over 5 years indicates a long-term need for these supercomputing services. 5. Awarded by the Environmental Protection Agency, this contract likely supports critical environmental modeling and data analysis.

Value Assessment

Rating: good

The contract value of $26.9 million for high-end supercomputing services over approximately 5 years appears reasonable given the specialized nature of the technology. Benchmarking against similar high-performance computing contracts is challenging due to the unique specifications and scale often involved. However, the allocation of funds across two task orders suggests a deliberate strategy to manage different aspects of the supercomputing infrastructure or services, potentially optimizing cost-effectiveness for each component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically drives better pricing and innovation. The level of competition is a positive sign for price discovery and ensuring the government receives value for its investment in advanced computing resources.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where providers strive to offer the best value, potentially leading to lower overall costs and higher quality services.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, gaining access to advanced supercomputing power. This contract will likely support critical environmental research, data analysis, climate modeling, and pollution tracking. The geographic impact is national, as EPA's work affects environmental policies and regulations across the United States. The contract may indirectly impact the scientific and research workforce by providing them with essential computational tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not meticulously monitored and controlled.
The long duration of the contract (over 5 years) necessitates ongoing vigilance to ensure continued relevance and performance.
Dependence on a single contractor for such critical infrastructure could pose risks if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process and potential for competitive pricing.
The clear division of funding between two task orders suggests a well-defined scope and management approach.
The contract supports a vital government agency (EPA) in its mission-critical functions, implying a high degree of importance and expected performance.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on high-end supercomputing. The market for supercomputing is characterized by specialized hardware, complex software, and significant R&D investment. Spending in this area is crucial for government agencies like the EPA to conduct advanced simulations, process massive datasets, and drive scientific discovery. Comparable spending benchmarks are difficult to establish precisely due to the bespoke nature of supercomputing solutions, but investments in this domain are generally substantial.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of high-end supercomputing often involves large, established technology providers. Further analysis would be needed to determine if small businesses are involved in the supply chain or in providing specialized support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, delivery schedules, and payment terms. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

High-Performance Computing Modernization Program (HPCMP)
National Science Foundation Supercomputing Centers
Department of Energy Advanced Scientific Computing Research

Risk Flags

Potential for cost growth due to Time and Materials pricing structure.
Long contract duration requires sustained oversight to ensure continued relevance and performance.
Dependence on a single awardee for critical supercomputing infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $26.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. FUNDING FOR NEWLY AWARDED HIGHEND SUPERCOMPUTING TASK ORDER FUNDING SHOULD BE 50% CSC00023 AND 50% CTS00057

Who is the contractor on this award?

The obligated recipient is LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2011-04-20. End: 2017-03-31.

What is the specific supercomputing hardware and software being procured under these task orders?

The provided data does not specify the exact hardware or software configurations for the high-end supercomputing task orders. Typically, such procurements involve state-of-the-art processors (CPUs and GPUs), high-speed interconnects, massive storage solutions, and specialized operating systems and scientific software libraries. The Environmental Protection Agency (EPA) would have detailed this in their requirements documentation, which is not publicly available in this dataset. Understanding the specific technology is crucial for assessing its suitability for the intended environmental modeling and data analysis tasks and for benchmarking against current market offerings.

How does the $26.9 million total contract value compare to previous EPA supercomputing investments?

Without historical data on the EPA's specific supercomputing investments, a direct comparison of the $26.9 million award is not possible. However, the scale of this award suggests a significant commitment to advanced computing capabilities. Agencies often procure supercomputing resources through a mix of direct purchases, leases, and task orders against larger indefinite-delivery/indefinite-quantity (IDIQ) contracts. The duration of over five years indicates a sustained need. To provide a comparative context, one would need to examine the EPA's budget allocations for IT infrastructure and high-performance computing over the past decade, looking at both capital expenditures and operational costs for similar systems.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this supercomputing contract. However, for high-end supercomputing, typical KPIs and SLAs would likely focus on system uptime, processing speed (e.g., FLOPS achieved), data throughput, storage accessibility, and response times for technical support. These metrics are critical for ensuring the reliability and performance necessary for complex scientific computations. The Environmental Protection Agency (EPA) would have defined these in the contract's Performance Work Statement (PWS) to ensure the contractor meets the required operational standards.

What is the risk profile of Leidos Management Systems Designers, Inc. as a contractor for this type of specialized service?

Leidos Management Systems Designers, Inc. is a subsidiary of Leidos, a large and established government contractor with extensive experience in IT services, including high-performance computing. While specific risk indicators for this particular entity are not detailed in the provided data, Leidos generally has a strong track record. Potential risks for any contractor in this domain could include technical challenges in meeting performance requirements, cybersecurity vulnerabilities, or project management issues. However, given Leidos's size and experience, the inherent risks are likely managed through robust internal processes and contractual oversight by the EPA.

How will the funding split between CSC00023 and CTS00057 impact the overall supercomputing capability delivered?

The funding split, with 50% allocated to CSC00023 and 50% to CTS00057, suggests that these two task orders likely represent distinct components or phases of the supercomputing solution. For example, one task order might focus on acquiring and setting up the core computing hardware, while the other could cover software, networking, data storage, or ongoing maintenance and support. This division allows for potentially different contracting approaches or vendor specializations for each part. The impact on overall capability depends on how well these two components are integrated and whether they are designed to work synergistically to meet the EPA's supercomputing needs.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,299,958

Exercised Options: $27,299,958

Current Obligation: $26,947,134

Actual Outlays: $118,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4550G

IDV Type: FSS

Timeline